How much do you get for filing a child on your taxes
The Child Tax Credit - The White House
To search this site, enter a search termThe Child Tax Credit in the American Rescue Plan provides the largest Child Tax Credit ever and historic relief to the most working families ever – and as of July 15th, most families are automatically receiving monthly payments of $250 or $300 per child without having to take any action. The Child Tax Credit will help all families succeed.
The American Rescue Plan increased the Child Tax Credit from $2,000 per child to $3,000 per child for children over the age of six and from $2,000 to $3,600 for children under the age of six, and raised the age limit from 16 to 17. All working families will get the full credit if they make up to $150,000 for a couple or $112,500 for a family with a single parent (also called Head of Household).
Major tax relief for nearly
all working families:
$3,000 to $3,600 per child for nearly all working families
The Child Tax Credit in the American Rescue Plan provides the largest child tax credit ever and historic relief to the most working families ever.
Automatic monthly payments for nearly all working families
If you’ve filed tax returns for 2019 or 2020, or if you signed up to receive a stimulus check from the Internal Revenue Service, you will get this tax relief automatically. You do not need to sign up or take any action.
President Biden’s Build Back Better agenda calls for extending this tax relief for years and years
The new Child Tax Credit enacted in the American Rescue Plan is only for 2021. That is why President Biden strongly believes that we should extend the new Child Tax Credit for years and years to come. That’s what he proposes in his Build Back Better Agenda.
Easy sign up for low-income families to reduce child poverty
If you don’t make enough to be required to file taxes, you can still get benefits.
The Administration collaborated with a non-profit, Code for America, who created a non-filer sign-up tool that is easy to use on a mobile phone and also available in Spanish. The deadline to sign up for monthly Child Tax Credit payments this year was November 15. If you are eligible for the Child Tax Credit but did not sign up for monthly payments by the November 15 deadline, you can still claim the full credit of up to $3,600 per child by filing your taxes next year.
See how the Child Tax Credit works for families like yours:
-
Jamie
- Occupation: Teacher
- Income: $55,000
- Filing Status: Head of Household (Single Parent)
- Dependents: 3 children over age 6
Jamie
Jamie filed a tax return this year claiming 3 children and will receive part of her payment now to help her pay for the expenses of raising her kids. She’ll receive the rest next spring.
- Total Child Tax Credit: increased to $9,000 from $6,000 thanks to the American Rescue Plan ($3,000 for each child over age 6).
- Receives $4,500 in 6 monthly installments of $750 between July and December.
- Receives $4,500 after filing tax return next year.
-
Sam & Lee
- Occupation: Bus Driver and Electrician
- Income: $100,000
- Filing Status: Married
- Dependents: 2 children under age 6
Sam & Lee
Sam & Lee filed a tax return this year claiming 2 children and will receive part of their payment now to help her pay for the expenses of raising their kids. They’ll receive the rest next spring.
- Total Child Tax Credit: increased to $7,200 from $4,000 thanks to the American Rescue Plan ($3,600 for each child under age 6).
- Receives $3,600 in 6 monthly installments of $600 between July and December.
- Receives $3,600 after filing tax return next year.
-
Alex & Casey
- Occupation: Lawyer and Hospital Administrator
- Income: $350,000
- Filing Status: Married
- Dependents: 2 children over age 6
Alex & Casey
Alex & Casey filed a tax return this year claiming 2 children and will receive part of their payment now to help them pay for the expenses of raising their kids. They’ll receive the rest next spring.
- Total Child Tax Credit: $4,000. Their credit did not increase because their income is too high ($2,000 for each child over age 6).
- Receives $2,000 in 6 monthly installments of $333 between July and December.
- Receives $2,000 after filing tax return next year.
-
Tim & Theresa
- Occupation: Home Health Aide and part-time Grocery Clerk
- Income: $24,000
- Filing Status: Do not file taxes; their income means they are not required to file
- Dependents: 1 child under age 6
Tim & Theresa
Tim and Theresa chose not to file a tax return as their income did not require them to do so. As a result, they did not receive payments automatically, but if they signed up by the November 15 deadline, they will receive part of their payment this year to help them pay for the expenses of raising their child. They’ll receive the rest next spring when they file taxes. If Tim and Theresa did not sign up by the November 15 deadline, they can still claim the full Child Tax Credit by filing their taxes next year.
- Total Child Tax Credit: increased to $3,600 from $1,400 thanks to the American Rescue Plan ($3,600 for their child under age 6). If they signed up by July:
- Received $1,800 in 6 monthly installments of $300 between July and December.
- Receives $1,800 next spring when they file taxes.
- Automatically enrolled for a third-round stimulus check of $4,200, and up to $4,700 by claiming the 2020 Recovery Rebate Credit.
Frequently Asked Questions about the Child Tax Credit:
Overview
Who is eligible for the Child Tax Credit?
Getting your payments
What if I didn’t file taxes last year or the year before?
Will this affect other benefits I receive?
Spread the word about these important benefits:
For more information, visit the IRS page on Child Tax Credit.
Download the Child Tax Credit explainer (PDF).
ZIP Code-level data on eligible non-filers is available from the Department of Treasury: PDF | XLSX
The Child Tax Credit Toolkit
Spread the Word
Child Tax Credit: Requirements, How to Claim for 2023
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Taxpayers may be eligible for a credit of up to $2,000 — and $1,500 of that may be refundable.
By
Sabrina Parys
Sabrina Parys
Content Management Specialist | Taxes, investing
Sabrina Parys is a content management specialist on the taxes and investing team. Her previous experience includes five years as a project manager, copy editor and associate editor in academic and educational publishing. She has written several nonfiction young adult books on topics such as mental health and social justice. She is based in Brooklyn, New York.
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and
Tina Orem
Tina Orem
Assistant Assigning Editor | Taxes, small business, retirement and estate planning
Tina Orem is an editor at NerdWallet. Prior to becoming an editor, she covered small business and taxes at NerdWallet. She has been a financial writer and editor for over 15 years, and she has a degree in finance, as well as a master's degree in journalism and a Master of Business Administration. Previously, she was a financial analyst and director of finance for several public and private companies. Tina's work has appeared in a variety of local and national media outlets.
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Edited by Arielle O'Shea
Arielle O'Shea
Lead Assigning Editor | Retirement planning, investment management, investment accounts
Arielle O’Shea leads the investing and taxes team at NerdWallet. She has covered personal finance and investing for 15 years, previously as a researcher and reporter for leading personal finance journalist and author Jean Chatzky. Arielle has appeared as a financial expert on the "Today" show, NBC News and ABC's "World News Tonight," and has been quoted in national publications including The New York Times, MarketWatch and Bloomberg News. Email: <a href="mailto:[email protected]">[email protected]</a>.
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Nerdy takeaways
For tax returns filed in 2023, the child tax credit is worth up to $2,000 per qualifying dependent under the age of 17.
The credit is partially refundable. Some taxpayers may be eligible for a refund of up to $1,500.
The credit amount decreases if your modified adjusted gross income exceeds $400,000 (married filing jointly) or $200,000 (all other filers).
The child tax credit is a federal tax benefit that plays an important role in providing financial support for American taxpayers with children. People with kids under the age of 17 may be eligible to claim a tax credit of up to $2,000 per qualifying dependent when they file their 2022 tax returns in 2023. $1,500 of that credit may be refundable
We’ll cover who qualifies, how to claim it and how much you might receive per child.
What is the child tax credit?
The child tax credit, commonly referred to as the CTC, is a tax credit available to taxpayers with dependent children under the age of 17. In order to claim the credit when you file your taxes, you have to prove to the IRS that you and your child meet specific criteria.
You’ll also need to show that your income falls beneath a certain threshold because the credit phases out in increments after a certain limit is hit. If your modified adjusted gross income exceeds the ceiling, the credit amount you get may be smaller, or you may be deemed ineligible altogether.
Though similar sounding, the child tax credit and the child and dependent care credit are not the same thing. The child tax credit is a tax incentive for people with children, while the CDCC is another tax credit for working parents or caretakers designed to help offset expenses such as day camp or afterschool care. Both credits have different rules and qualifications.
Who qualifies for the child tax credit?
Taxpayers can claim the child tax credit for the 2022 tax year when they file their tax returns in 2023. Generally, there are seven “tests” you and your qualifying child need to pass.
Age: Your child must have been under the age of 17 at the end of 2022.
Relationship: The child you’re claiming must be your son, daughter, stepchild, foster child, brother, sister, half brother, half sister, stepbrother, stepsister or a descendant of any of those people (e.g., a grandchild, niece or nephew).
Dependent status: You must be able to properly claim the child as a dependent. The child also cannot file a joint tax return, unless they file it to claim a refund of withheld income taxes or estimated taxes paid.
Residency: The child you’re claiming must have lived with you for at least half the year (there are some exceptions to this rule).
Financial support: You must have provided at least half of the child’s support during the last year. In other words, if your qualified child financially supported themselves for more than six months, they’re likely considered not qualified.
Citizenship: Per the IRS, your child must be a "U.S. citizen, U.S. national or U.S. resident alien," and must hold a valid Social Security number.
Income: Parents or caregivers claiming the credit also typically can’t exceed certain income requirements. Depending on how much your income exceeds that threshold, the credit gets incrementally reduced until it is eliminated.
Did you know...
If your child or a relative you care for doesn't quite meet the criteria for the CTC but you are able to claim them as a dependent, you may be eligible for a $500 nonrefundable credit called the "credit for other dependents. " Check the IRS website for more information.
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How to calculate the child tax credit
For the 2022 tax year, the CTC is worth $2,000 per qualifying dependent child if your modified adjusted gross income is $400,000 or below (married filing jointly) or $200,000 or below (all other filers). If your MAGI exceeds those limits, your credit amount will be reduced by $50 for each $1,000 of income exceeding the threshold until it is eliminated.
The CTC is also partially refundable tax credit; that is, it can reduce your tax bill on a dollar-for-dollar basis, and you might be able to apply for a tax refund of up to $1,500 for anything left over. This partially refundable portion is called the “additional child tax credit” by the IRS.
How to claim the credit
You can claim the child tax credit on your Form 1040 or 1040-SR. You’ll also need to fill out Schedule 8812 (“Credits for Qualifying Children and Other Dependents”), which is submitted alongside your 1040. This schedule will help you to figure your child tax credit amount, and if applicable, how much of the partial refund you may be able to claim.
Most quality tax software guides you through claiming the child tax credit with a series of interview questions, simplifying the process and even auto-filling the forms on your behalf. If your income falls below a certain threshold, you might also be able to get free tax software through IRS’ Free File.
When to expect your CTC refund
The IRS cannot release an additional child tax credit refund before mid-February. Per the agency, early filers who selected direct deposit as their refund method, e-filed, and submitted an error-free return could begin seeing refunds hit their accounts by February 28. If you want to check on the status of your return before then, the "Where's My Refund" tool will begin showing updated statuses for early filers by February 18.
Internal Revenue Service
. When to Expect Your Refund if You Claimed the Earned Income Tax Credit or Additional Child Tax Credit.
View all sources
Consequences of a CTC-related error
An error on your tax form can mean delays on your refund or on the child tax credit part of your refund. In some cases, it can also mean the IRS could deny the entire credit.
If the IRS denies your CTC claim:
You must pay back any CTC amount you’ve been paid in error, plus interest.
You might need to file Form 8862, "Information To Claim Certain Credits After Disallowance," before you can claim the CTC again.
If the IRS determines that your claim for the credit is erroneous, you may be on the hook for a penalty of up to 20% of the credit amount claimed.
State child tax credits
In addition to the federal child tax credit, a few states, including California, New York and Massachusetts, also offer their own state-level CTCs that you may be able to claim when filing your state return. Visit your state's department of taxation website for more details.
History of the CTC
Like other tax credits, the CTC has seen its share of changes throughout the years. In 2017, the Tax Cuts and Jobs Act, or TCJA, established specific parameters for claiming the credit that will be effective from the 2018 through 2025 tax years. However, the American Rescue Plan Act of 2021 (the coronavirus relief bill) temporarily modified the credit for the 2021 tax year, which has caused some confusion as to which changes are permanent.
Here's a brief timeline of its history.
1997: First introduced as a $500 nonrefundable credit by the Taxpayer Relief Act.
2001: Credit increased to $1,000 per dependent and made partially refundable by the Economic Growth and Tax Relief Reconciliation Act.
2017: The TCJA made several changes to the credit, effective from 2018 through 2025. This included increasing the credit ceiling to $2,000 per dependent, establishing a new income threshold to qualify and ensuring that the partially refundable portion of the credit gets adjusted for inflation each tax year.
2021: The American Rescue Plan Act made several temporary modifications to the credit for the 2021 tax year only. This included expanding the credit to a maximum of $3,600 per qualifying child, allowing 17-year-olds to qualify, and making the credit fully refundable. And for the first time in U.S. history, many taxpayers also received half of the credit as advance monthly payments from July through December 2021.
2022–2025: The 2021 ARPA enhancements ended, and the credit will revert back to the rules established by the TCJA — including the $2,000 cap for each qualifying child.
Frequently asked questions
Does the child tax credit include advanced payments this year?
The American Rescue Plan Act made several temporary modifications to the credit for tax year 2021, including issuing a set of advance payments from July through December 2021. This enhancement has not been carried over for this tax year as of this writing.
Is the child tax credit taxable?
No. It is a partially refundable tax credit. This means that it can lower your tax bill by the credit amount, and if you have no liability, you may be able to get a portion of the credit back in the form of a refund.
Is the child tax credit the same thing as the child and dependent care credit?
No. This is another type of tax benefit for taxpayers with children or qualifying dependents. The child and dependent care credit covers a percentage of expenses you made for care — such as day care, certain types of camp or babysitters — so that you can work or look for work.
I had a baby in 2022. Am I eligible to claim the child tax credit when I file in 2023?
If you also meet the other requirements, yes. You'll also need to make sure your child has a Social Security number by the due date of your 2022 return (including extensions).
About the authors: Sabrina Parys is a content management specialist at NerdWallet. Read more
Tina Orem is an editor at NerdWallet. Before becoming an editor, she was NerdWallet's authority on taxes and small business. Her work has appeared in a variety of local and national outlets. Read more
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Child allowance (Kindergeld) | Handbook Germany
Updated 01/25/2023
Diapers, toys, clothing, school supplies, hobbies and education. Raising children costs a lot of money. In order to somehow help parents, in Germany there is a so-called “child benefit” or in German “Kindergeld”. Such financial support should help them provide their child with a full life and a good future.
Listen
What should I know?
Child allowance (Kindergeld) should help parents support their children. It doesn't matter if it's a hobby or going to university. All of this, and even your child's typical weekday, will cost money. In order for children in Germany to be provided with everything necessary, their parents receive such an allowance. It doesn't matter if they work or not.
You can receive child benefit (Kindergeld) if the following conditions are met:
- your child is under 18 years of age. Child allowance (Kindergeld) can in some cases also be received by adults. For more information on this, see the section “My child is already 18 years old. Can I get Child Benefit (Kindergeld)?”
- your child lives with you and you support him. Important: the child does not have to be your own. He may be adopted, from another marriage, in temporary custody, or your grandson/granddaughter.
- your child lives in Germany, the European Union, Norway, Iceland, Switzerland or Liechtenstein. Important: what citizenship the child has does not matter.
In addition, one of the following conditions must be met:
- you have German citizenship.
- you have the citizenship of one of the EU countries or Norway, Iceland, Switzerland or Liechtenstein.
- you have a residence permit (Aufenthaltserlaubnis) in Germany with which you can work for at least 6 months. It doesn't matter if you work or not. The main thing is that you have the right to do so.
- you have the citizenship of Algeria, Bosnia and Herzegovina, Kosovo, Morocco, Montenegro, Serbia, Tunisia, Turkey and you are officially employed in Germany or receive Arbeitslosengeld I or Krankengeld.
Please note: holders of deportation deferral (Duldung) are generally not eligible for child support (Kindergeld). An exception is the holders of a postponement of deportation in connection with work (Beschäftigungsduldung). If this is your case, you can claim Child Benefit (Kindergeld) regardless of your country of origin. Holders of a suspension of deportation due to study (Ausbildungsduldung) are not subject to this rule.
More information can be found in the special manual in German.
You will receive child benefit (Kindergeld) until your child is 18 years old. If he is registered as unemployed (arbeitslos) or looking for a job (arbeitssuchend), you can receive benefits until he is 21 years old. If your child goes to school, learns a new profession (Ausbildung), studies at a university or volunteers in a recognized voluntary service (Freiwilligendienst), you will be able to receive benefits until he turns 25 years old.
Child benefit (Kindergeld) can be claimed immediately after the birth of a child or after you have arrived in Germany and meet the above requirements.
You can apply for benefits online at the Bundeagentur für Arbeit website. You can also download, print and fill out the application by hand. On the site arbeitsagentur.de you will find the necessary forms "Antrag auf Kindegeld" and "Anlage Kind zum Hauptantrag Kindergeld" in different languages, including Ukrainian.
The taxpayer identification number must be included in the application. Yours and your child. What it is and how to obtain it, you will learn from the section “What is a taxpayer identification number (Steueridentifikationsnummer)?” of our chapter “The German tax system”. If your child was born abroad or currently resides in another EU country, you will also need to send a copy of his birth certificate issued abroad.
You must send the application and the required documents (eg birth certificate of the child) to the family insurance fund (Familienkasse) responsible for you. You can find it on arbeitsagentur.de by entering your postal code.
Upon receipt of your application, the Office will review it and contact you if it has questions or if any documents are missing.
You will receive an answer within the next 6 weeks. If this does not happen, then you can call the free number 0800 4 555530 and find out in German how long it will take to process your application.
Child benefit (Kindergeld) can only be claimed by one person. That is, if you are supporting a child with your partner or with your partner, then you must decide in advance on whose behalf you will apply. Be sure to read the section “What is the amount of Child Benefit (Kindergeld)?” before doing so.
Please note: If the child's parents live separately, the parent with whom the child lives longer will receive the allowance. If one of the parents pays child support, it will be reduced by exactly half the amount of child support (Kindergeld).
Child benefit (Kindergeld) you will receive by transfer to your bank account. If you have several children, then you will receive a monthly transfer for all of them at once.
Which day this happens depends on the last digits of your Kindergeldnummer. On the website arbeitsagentur.de you will find exact information on which days you will receive benefits.
From January 2023 you are entitled to 250 euros per child per month. The number of children in the family no longer plays any role.
Important: you cannot receive Child Benefit (Kindergeld) for children who do not live with you.
Case study: You have three children and only two of them live with you. The third, the oldest, lives with his other parent. You won't be able to receive benefits for it.
You can also receive child benefit (Kindergeld) retroactively. But only in the last 6 months. Therefore, it is very important to apply on time.
Yes. You must notify your family insurance fund (Familienkasse) immediately of any changes that may affect child support (Kindergeld). For example, if:
- you or the other parent took a job abroad,
- you, the other parent or your child moved abroad,
- your child receives any family allowance in another country,
- you are separated or divorced from your spouse or partner,
- the child no longer lives with you,
- you or the other parent got a job in the public service,
- you are moving,
- you have changed your bank account.
If you receive an allowance for a child who is already 18 years old, you will also need to inform your family fund (Familienkasse) of the following changes:
- your child has graduated from school, university or a new profession (Ausbildung),
- your child got a job,
- your child has received a place in a new profession (Ausbildung) or entered a university,
- your child interrupted the development of a new specialty (Ausbildung) or university studies, or changed course/faculty/university,
- Your child is pregnant and is on maternity leave (Mutterschutz).
Please note: German law requires you to share important changes in your life with the family fund. If you do not, then you are committing an administrative offense, and in some cases even a crime.
The Family Insurance Fund (Familienkasse) regularly checks whether you still meet the conditions for child benefit (Kindergeld). For this, you receive a special questionnaire from her.
In it, for example, you can find questions such as:
- Are you still in Germany?
- Does your child still live with you?
- Is your child still in school or learning a new trade (Ausbildung)?
In addition, you will be asked to send some documents or proof from, for example, your child's school.
Please note: It is very important that you meet the deadlines set by your family fund. If you respond late, your child support (Kindergeld) may be stopped. If you are unable to respond within the deadlines, ask your family benefit in advance for an extension.
If there are changes in your life, eg your child has completed a new occupation (Ausbildung), this may also affect the amount of the child benefit (Kindergeld). In this case, you will receive an "Aufhebungsbescheid" (cancellation notice) or an "Erstattungsbescheid" (refund notice).
If you have been overpaid by this point, you will need to pay that amount back. Your family fund (Familienkasse) will inform you about this and ask for the overpayment back. In this case, it will need to be paid at the Inkasso-Service of the federal employment agency.
If you have any questions about the "Aufhebungsbescheid" or "Erstattungsbescheid", you can ask your family fund. You can find it on arbeitsagentur.de with your postal code.
If you do not agree that you owe some of your benefits back, you can appeal the decision. This can be done in writing or orally on the spot at your family fund. Important: even if you dispute the decision of the department, you still need to return the required amount back without delay. If it is decided that this was not necessary, then you will later return this money. For more information on how to challenge a decision, see the “How can I challenge an agency decision?” section.
If your child benefit (Kindergeld) is less than you expected, first find out the reason from your family fund (Familienkasse). This can be done in writing or orally on the spot in the department itself. You can find it on arbeitsagentur.de with your postal code.
If you do not agree with the decision of the family fund, you can appeal against it. This must be done within one month of receiving it. You can do this in writing or orally on the spot at the department itself. You will find information about who exactly you need to address the letter to in the decision that you received. You don't need to pay for this. For more information on how to challenge a decision, see the “How can I challenge an agency decision?” section.
If your protest is denied, you can challenge the decision in court. You also have exactly one month from the date of receipt of the refusal for this. Litigation costs money. At the same time, people with low income can receive special support to pay for it - Prozesskostenhilfe. Be sure to consult with experts on this issue. You can find them, for example, in the Youth Migration Service. Its employees speak different languages.
If your application for child support (Kindergeld) was rejected, first find out the reason from your family insurance fund (Familienkasse). This can be done in writing or orally on the spot in the department itself. You can find it on arbeitsagentur.de with your postal code.
If you do not agree with the decision of the family fund, you can appeal against it. This must be done within one month of receiving it. You can do this in writing or orally on the spot at the department itself. You will find information about who exactly you need to address the letter to in the decision that you received. You don't need to pay for this. For more information on how to challenge a decision, see the “How can I challenge an agency decision?” section.
If your protest is denied, you can challenge the decision in court. You also have exactly one month from the date of receipt of the refusal for this. Litigation costs money. At the same time, people with low income can receive special support to pay for it - Prozesskostenhilfe. Be sure to consult with experts on this issue. You can find them, for example, in the Youth Migration Service. Its employees speak different languages.
If you think that the family fund (Familienkasse) has made a mistake, you can appeal against its decision, stating that its assessment of your current situation was incorrect. You have one month for this. The countdown begins three days after the date printed on the envelope in which you received the agency's decision. If the third day is a Saturday, Sunday or a holiday, then the countdown starts from the first working day. If you do not agree with the decision, you must inform your family benefit in writing by mail or fax. Or personally inform the department and ask to record your disagreement in the protocol.
The letter must contain at least your name, surname and address, as well as the address of the family insurance fund responsible for you and the number of the decision (Aktenzeichen) you received. It is not necessary to indicate the reason why you want to appeal the agency's decision, but it is recommended. If you cannot find the reason within the time limit, you can provide it later. You can find a sample letter on the Kindergeld.org website. If you need help with its preparation, you can contact the Youth Migration Service.
Important : You do not need to pay for the fact that you decide to appeal the decision of the department. You also do not need to hire a lawyer.
The main rule is that anyone who does not pay taxes in Germany cannot receive child support (Kindergeld) in the country.
If you live abroad, you can only receive child support from Germany if you meet the following conditions:
- your tax liability in Germany is unlimited. That is, you work abroad for a company or organization from Germany and pay taxes in Germany,
- your children live in Germany or another EU country,
- you have German citizenship.
If you live abroad and your tax liability in Germany is limited, you can receive child support (Kindergeld) as state aid. To do this, you must meet one of the following conditions:
- you are insured by the federal employment agency (Bundesagentur für Arbeit).
- you work as an expert for developing countries (Entwicklungshelfer*in) or you are a missionary.
- you are employed or self-employed in Germany and receive a pension from Germany and you are an EU citizen and live in the EU.
Please note: may also be such that the child is eligible for benefits in several countries at once. In this case, the state in which his parents work is responsible for him. Or the one in which the child lives. As a rule, in this case, only the responsible country pays the child benefit.
You can read more about this in German at arbeitsagentur.de.
Everyone who has income in Germany must pay taxes. To ensure that parents have enough money to support their children, there are special tax benefits for them. They can receive up to 8,952 euros per year for two or 4,476 euros each (data from 2023), without paying taxes on this amount. This is the tax-free minimum for one child (Kinderfreibetrag or also Erziehungs- oder Betreuungsfreibetrag).
Since only half of this tax benefit is available to single parents, there is also a so-called "Entlastungsbetrag für Alleinerziehende" for them. Thanks to him, they have the right not to tax an additional 4260 euros per year (data from 2023). This amount will increase by 240 euros for each additional child.
Child benefit (Kindergeld) also serves this purpose. And it's also tax-free. The difference between it and the non-taxable minimum for children is that you receive the allowance monthly in your bank account, and the minimum is taken into account when filing a tax return. It will be deducted from your annual income, thus you will have to pay less taxes.
Important: You can either receive child support or have a tax-free minimum for children (Kinderfreibetrag). After you submit your tax return, the tax office (Finanzamt) will check which option is more beneficial for you. This will be done automatically, you do not need to ask the department about it. If your total child support amount exceeds the amount you can save with the child tax exemption, you will continue to receive benefits. Otherwise, the tax office will take into account in your declaration the non-taxable minimum for children.
Please note: even if you are absolutely sure that the best option for you is the tax-free minimum for children (Kinderfreibetrag), you should still apply for child support (Kindergeld). When examining a tax return, the financial inspectorate always bears in mind that all parents in Germany receive child support and automatically take this amount into account in their calculations, regardless of whether this is true or not.
This tax credit can be used until the child is 18 years old. If your child is learning a new specialty (Ausbildung) or studying at the university - until he is 25 years old.
The “Kinderzuschlag” or KIZ for short is given to parents who earn enough to feed themselves but not enough to support their family members.
You can receive a maximum of 250 euros per child per month (data from 2023). The child allowance already includes the so-called “Sofortzuschlag“ in the amount of 20 euros per child. How much you will receive depends on your personal situation. The more you earn, the lower the child allowance will be. Your child's income, such as alimony or orphan's pension, will also affect its amount.
In addition to the child allowance, you can also receive the educational package “Bildungs- und Teilhabepaket”. These are, for example, a free lunch for your child at school or kindergarten, or a supplement for the purchase of school supplies, etc. Recipients of the Kinderzuschlag child supplement are also exempt from paying kindergarten fees.
To receive the Kinderzuschlag child allowance, you must meet the following conditions:
- your child must be under 25 years of age and unmarried,
- you must receive child support (Kindergeld),
- you must earn at least €600 per month before taxes if you are a single parent and €900 per month before taxes if you are a couple.
You can find out if you qualify for the Kinderzuschlag child allowance with KiZ-Lotse.
The child supplement must be requested in writing from your Family Health Insurance Fund (Familienkasse). The application can be filled out online at arbeitsagentur.de.
The child allowance will be calculated together with the child allowance (Kindergeld). For more on this, see the section just above “How will I receive Child Benefit (Kindergeld)?”
Earned Income Tax Credit (EITC)
EITC is a federal (state), provincial (state), and local (city) tax credit/rebate up to $11,000 for eligible families , non-custodial parents, full-time or part-time workers, and self-employed individuals. If you claim this tax credit on your 2022 tax return, you can reduce the taxes you pay and potentially increase your refund.
- File your federal and New York State tax returns to claim your Earned Income Tax Credit (EITC). File your 2022 tax return by April 18, 2023
- To be eligible, you must have earned earned income from full-time or part-time work in 2022.
- Earned income includes all taxable income from your work or business.
- If you don't know what counts as earned income, see the IRS website for more information.
- Average EITC for most eligible New Yorkers is $2,400
- If you are claiming this tax credit, the refund may be deferred. By law, the IRS must wait until mid-February to issue refunds to taxpayers who have filed for an earned income tax credit.
Who is eligible
You are eligible for EITC on your 2022 tax return if all of the following statements apply to you.
- You have a valid Social Security Number (SSN).
- Your income, marital status and your children in 2022 met the criteria below.
- Married with eligible children and earning up to 59$187
- Married with no eligible children and earning up to $22,610
- Single with eligible children and earns up to $53,057
- Single/single with no eligible children and earns up to $16,480
- Eligible children include biological children, stepsons/stepdaughters, pupils and grandchildren. If you do not have children, you will only qualify for EITC if you are between 25 and 64 years old.
- Your return on investment (investment income) was less than $10,300 in 2022
- In 2022, you lived at your primary residence in the United States for more than six months.
- You will file a tax return this year and will not be listed as an eligible child on anyone else's tax return.
- You will NOT file Form 2555, Foreign Earned Income.
If you are still not sure if you qualify for EITC, the IRS has an Earned Income Tax Credit Eligibility Tool called the Earned Income Tax Credit Assistant to help you determine if you qualify .
What you need to apply
To claim benefits, you must collect the following documents for all individuals listed on your tax return: naturalization certificate.
If you wish to receive a refund by direct deposit into your account, you will need to provide your bank account details (cancelled check and/or proof of deposit).
How to apply
To receive EITC, you must file federal and state tax returns during the tax period. You will need to file the following forms:
- Form 1040 or Form 1040NR
- Schedule EIC Addendum to Your Federal Tax Return if You Have a Child
- New York State Tax Credit Form IT-215
- Statement C from Instruction Form IT-215 for New York City Tax Credit
If your household income was $80,000 or less in 2022 OR if you are filing an individual declaration and your income in 2022 was $56,000 or less, you can File your tax return free of charge at New York City Free Tax Prep Center .